A Weakness of Profit-Sharing Plans Is That Employees Do Not

question 8

True/False

A weakness of profit-sharing plans is that employees do not have total control over the profitability of an organization.

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Definitions:

Salary Allowances

Additional compensations over the base salary that may cover various specific needs or expenses.

Net Income

The amount of revenue that remains after subtracting all expenses, taxes, and costs from total sales; a key indicator of financial health.

Salary Allowance

Salary allowance is a fixed amount of money paid to employees in addition to their regular salary, often to cover specific work-related expenses.

Average Capital Investment

The mean amount of money that has been invested in the assets of a company over a specific period.